FX in grain marketing

[sawfly]

but we know who pays.
from the govt.s response this situation is a permanent fixture. no intention of doing anything.

i think the farmers love affair with the conservatives might be over.
they con.s have moved out and are sleeping with someone else now.

[tweety]

John, thank you for your patience and most excellent explanation. As was said early on, many will read and reread what you have written and try our best to understand.

The rest, in the words of Taylor, haters gotta hate hate hate hate.

Good call on the bully!

[farming101]

John,
Your solutions to problems 1 and 2 implicate the railways as the reason for erosion of farm gate prices and higher risks throughout the system.
Agreed, but at the end of the day, everyone should realize that railway activity in western Canada is at an all time high. Could they do more? Likely.
According to the new railway reports dwell time is the big one.

IMHO your solution 1 and 2 do not provide a long term remedy to the problems that have arisen in the last 2 years.

Solution 3 does. Farmers need to minimize debt and adapt to the realities of the new system. It's a tall order.

The Canadian system does not have the capacity to handle huge crops year in and year out. That will change but it will take years. If western Canada continues to produce good or big crops the marketing problems for farmers will remain.

On the positive side, things could be a lot worse. I was just a kid, but I remember 1969. Tough times. Great to have canola and special crops now.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/Wheat%20ending%20stocks%20Canada_zpsdkruuezo.jpg&q uot; border="0" alt=" photo Wheat ending stocks Canada_zpsdkruuezo.jpg"/></a>

[farmaholic]

Tweety, I am one who hasn't taken the time to responde and will need to "study" what has been put forward. I just want a chance at understanding what is being said first.

The only comment I will make is I don't want to be held responsible for other players mistakes. I don't think that is too much to ask but we seem to be the easiest ones to take it from to make up the differences.

I'm busy cramming for other tests but would like read and study John's explanations, hopefully gain some insight.

Farming101 put up a dated chart of dedutions that shows the charges and possible explanation of differences between port and farmgate prices. I found it took some of the sting out of the difference.



The argument could be should it all be producer borne?

[stonepicker]

ah yes, 1969, wasn't that the year of the 3bu./acre wht. quota? Or 1968? or both? I was a kid then too, but i remember it was tough times. It makes today's prob. look like a bit of a picnic. ( mainly because we can actually do something about it now )

[binthere]

yes those were the days. driving my tractor up and down highway number two with signs hanging on the side. otto lang flew over. shortly after operation lift. paid us to grow less. almost like they were covertly telling farmers what had to be done. it worked for a few years and then we forgot i guess.

[stonepicker]

yep the russians pulled a good one on us shortly after that. ( great grain robbery )

[bucket]

Farming101

This problem didn't arise in the last 2 years.

Hermanson identified the same problem in 1997.

The railways and graincos have had nearly 20 years to build for future export growth. They haven't.

It's going to cost this country 100s of billions because they stagnated their growth to appease shareholders.

Zero vision.

[farming101]

I agree Bucket, the problems have very deep roots. Very few nation builders left in the corporate world.

But nation building is a messy business and when this one was built there were some unintended consequences to a lot of the deals made to settle the west. There is still fallout.

I mentioned 2 years ago because farmers were more or less out of wheat just 2 years ago. Ending stocks consisted of commercial stocks, seed for next year's crop and very little extra.

Sorry, I think my post derailed the topic of this thread.

[bucket]

Depape

No doubt the railway don't have the capacity.

But why is that?

Is statscan not giving politicians the correct info?

Or are the politicians too stupid to interpret the info to build for the future?

After 1997 if the stats and vision would have been implemented 2014 would not have happened.

As an exporting nation someone better quickly look at the lack of capacity to move product efficiently.

Potash exports up. Grain organizations have growth targets that can't be handled by the existing rail system.

And farmers have always met the challenges.

So have a lot of other exporting industries in this country.

As a country not just in ag. There is a heap of transportation structural deficits that are going to pop up.

1997 gave the transportation industries a hint of what would happen.

No one looked forward.

[blackpowder]

I like this thread. Graincos explain nothing. Only place to read that is here.
Wilagro finally realized what running a multimillion $ business entails.
The one note fiddles got tuned a little.
"Buy retail, sell wholesale, pay the freight both ways" is what small scale grain farming is. Is why there will be a lot less of them in time. Those too far from border if can, Grow Less damn Wheat!
As the asshole Trudeau said "why should I sell your wheat?"
Similar note. The most insufferable pricks in the bar (after the meth heads who are insufferable but not pricks) are the retired grain farmers.
Notice an entire post that is anti nothing and has no insertions regarding money or the tropics.
No animals were harmed in the making of this post.

[bucket]

Farming101

No you didn't derail anything. It's about taking a panoramic view of things and seeing how they are all interconnected.

Canada has a severe infrastructure deficit and it affects everyone.

Depending on how you look at things it can make the country better by creating jobs to put it into the 21 century. Technically rebuilding what we already had.

[wilagro]

I wonder why Ritz and company never come on this forum and interact with the great unwashed. I guess that he is too busy to hobnob with ordinary folk.

It would help if those who get all the flack participated in the discussions.

[gustgd]

Thanks John for starting the tread and all those who participated constructively. You know who you are.

I may not agree but I'm starting to understand better. You all should type slower .

Wilagro if Minister Ritz or any Ag Minister spent their time reading agri-ville I would question competence.

This thread did get derailed, but it was by those setting up straw men when they couldn't debate John on the merits of his arguments

[sawfly]

i am not gonna get used to it.
and nor should any exporter.

if the infrastructure is at fault
take the unemployed from oil price drop.
do public works and Fix it.

if it is a corporate structure problem ,
then restructure them out of existence.
and start over .

doing the SFA, that this gov . is doing is not an option.

if there was a war . overnight we would figure out a solution.

but no the govt.s corporate friends can bleed us dry for years.
extorting what ever basis to fit our bushels thru a too small hole.

i guess it just speeds up the planned transfers of wealth from the peons to the top 1 %

Top Conservative's well know , that really there is no need for a middle class.